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OTC stocks more difficult to trade and deposit

  Mina Mar Group helps micro-cap companies structure their growth. Micro-capitalized companies are those with less than $50,000,000 in equity, sometimes under $1,000,000. Restructuring involves raising money (both debt and stock), and planning how they will eventually harvest that wealth. If you’re a founder or investor, the secret to harvesting your equity is to possess assets with a developed market for their sale; up until recently, that market was the public market. Now, Over-The-Counter Securities (“OTC Securities”) don’t serve that purpose since, unless you’re a tech unicorn doing an IPO, there are essentially no ways to sell the shares you’ve invested in. OTC securities – how they were deposited five years ago. Brokerages all around the country have tightened compliance over the past five years to the point where no one may deposit share certificates into their brokerage accounts, even if they can prove that they paid for them. Consider the following demand from a secondary ...

All-cash, All-stock offer

An acquisition strategy known as an “all-cash, all-stock offer” requires the buyer to commit to purchasing all of the target company’s outstanding shares for a certain amount in cash. It is also characterized as buying all of a company’s outstanding shares from its shareholders in exchange for payment. All-cash, all-stock offers are typically taken into consideration as a strategy to complete an acquisition. This could be an excellent technique the acquiring corporation might use to make the transaction appear sweet and persuade shareholders who are on the fence to accept the sale by offering a premium above the cost at which the shares are now trading. So if it’s that case, if indeed the company was purchased at a premium, then shareholders of the target company could experience an increase in the value of their shares. Even when we talk about cash deals, a stock value for the target firm is discussed, and that value may be considerably higher than its current market price. Therefore,...

Market Trends

When we speak about market trends that actually refers to anything that alerts the market your corporation operates in.  So, there’s a good chance that different market trends are having an impact on your company’s operations simultaneously at this very moment. This imposes the following question- why would it be necessary to stay up-to-date on market trends and developments? That’s the way you evolve and remain competitive.  Maybe you can’t take a race with the velocity of change connected with technology or legislation, but there is one thing you can do - take actions that can help you to expand in parallel with all those changes. So, there is no need for spending hours a week tracking trends research. It’s enough just to comprehend the diverse market trends which can help you identify what is actually appropriate for your company. This kind of in-depth research enables you to quickly adjust to dynamic market conditions and maintain your competitiveness. According to this an...

S1 Registration

A Form S1 represents the opening registration that a US firm must submit with the SEC prior to an Initial Public Offering. The Securities Act requires a registration statement, otherwise known as Securities and Exchange Commission Form S1, previous to security can be issued on a public exchange such as the NASDAQ, NYSE, or other exchanges. Foreign corporations can register with the SEC, but they must do so using the SEC Form F1. Corporations must fill out Form S1 to outline their intended use of capital proceeds, a description of their current business strategy and competition, and a brief prospectus for the new security, including offering pricing mechanism and any other dilution to other listed stocks.  The SEC also mandates that any material business conducted between the corporations and its directors and external counsel be disclosed. Investors can access S1 filings online in order to do due diligence on new offers before they go public.  As a result, businesses can use t...

How important marketing is for Regulation A?

  Regulation A+ represents the lately enacted SEC rule that amends and expands the rarely utilized Regulation A offering exemption. Regulation A+ might be viewed as an alternative to a small registered IPO and also, as a substitute or addition to other securities offering procedures that are not subject to registration under the Securities Act.  Although Regulation A+ is still quite new, it is swiftly establishing a name as the perfect spot for so many American businesses looking for capital. Reg A+, which is supported by the SEC, actually permits non-SEC reporting corporations to raise capital from public investors while also allowing (or even more motivating) the issuer to publicize their offering openly.  The opportunity to publicly market to investors has benefited greatly for numerous corporations.  This method is intended to reduce regulatory constraints by allowing companies who wouldn’t have contemplated pursuing total IPOs to get the type of financing necess...

Foreign Companies

Lately, we are getting many inquiries about dual listing or to list foreign companies either through IPO or RTO on OTCmarket. What are the benefits for foreign companies to be listed on OTC markets and how they can do that?  Is it an easy procedure, and what are the conditions? What is the main reason for companies that are listed on qualified foreign exchanges to trade on OTC markets? We are here to cater to your questions by providing you with the right answers. The first thing we need to start with is that this market is a global market. Only that fact gives you countless opportunities. To be listed on Wall Street which represents a vital center of global finance, for early-stage growth companies, and having access to US investors can bring a significant competitive advantage. It is appropriate for small businesses due to its regulatory structure, which gives better transparency and accessibility to a bigger pool of less risk-averse and more active investors. This is import...

Company Disclosures

When we speak about disclosures and what they represent in financial terms, that actually refers to providing the public with all relevant information about a company on time.  So relevant information includes facts, figures, dates, procedures, innovation, etc, which means any information regarding a company that can probably impact an investor’s decision. As a result, it is necessary to comprehend that public company directors and officers are in charge of company disclosures and securing investors with complete and valid information. Access to material info enables investors to make information-based investment decisions, which is vital for efficient market pricing and on which state and federal securities are based.  Anytime new stocks are issued to the public, the SEC requisite disclosures of relevant financial and business info to possible investors, with exemptions provided for private placements and small issues. Integrated disclosure structure is the name give...

Gypsy Swaps

The term known as a gypsy swap is a method of raising capital that involves persuading existing shareholders to exchange their free-trading, common stock for a restricted one. Gypsy Swap is a transaction that has been in practice by stock promoters for many years. The SEC's view is that Gypsy Swaps are a means to evade the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), and violate Section 5 of the Securities Act. The SEC has established specific rules in the Securities Act under Section 5 that require any new stock transaction must be listed with the SEC. The SEC has said unequivocally that Gypsy Swaps are infractions of Section 5 of the Securities Act of 1933, exposing all participants to monetary and other civil penalties, including disgorgement. It's important for issuers and investors to remember that a Gypsy Swap is only one way to avoid the registration requirements of Section 5 of the Securities Act. Any transaction in which t...

Shell Risk Designation

  The OTC Market launches this new Promotion Risk flag that should assist investors in recognizing stocks that are now part of a stock promotion strategy.   OTC Markets with their team keeps a close eye on a number of sources to assess whether a stock is being pushed, so their main assignment is to gather information from a massive number of market players and analyze all collected data before putting the Promotion Risk flag on their website.  A “Shell Risk” flag has been added to these new designations, signifying that a corporation exhibits features related to shell corporations, based on a review of the firm’s major yearly financial data, which are connected to limited activities. Shell corporations have few or no assets and operations. All that OTC Markets try to do with all these activities is to demonstrate their dedication to a market compliance monitoring system that promotes more transparency, prompt info, and at last greater security of investors so to be a...

The reasons why you should hold Penny Stocks

There are many prejudices about Penny Stocks and why should anyone have them in their portfolio. As defined by the U.S. Securities and Exchange Commission, penny stock is any publicly traded firm’s share that trades below $5 per share.   These types of stocks are inexpensive, allowing you to invest without committing large sums of money, which is advantageous for those on a limited budget.   That also implies if the business in that you have just invested fails, you won't suffer a significant loss per share.  Finally, all this indicates that the very same amount of money can purchase more penny stock shares than it can purchase more expensive securities shares. Tremendous gains can be made with a tiny initial investment. As a result, they have the potential to become extremely successful.  Despite their significant volatility, penny stocks provide excellent returns. These stocks have the ability to provide explosive growth of 100% or over in a single day, a...

Reverse Takeover (RTO)

A reverse takeover (RTO), sometimes known as a reverse IPO, is the process by which a small private business acquires a bigger, existing publicly listed firm in order to go public. Because the smaller firm is taking over the larger company, the merger is going place in "reverse" order, which is unusual. Benefits of a Reverse Takeover 1. No need for registration Because the private business will acquire the publicly traded firm through the mass purchase of shares in shell companies, unlike an IPO, the company will not require registration. 2. Less expensive A tiny private company's decision to go public through an Initial Public Offering (IPO) is not simple. It has the potential to be extremely costly. The cost of a reverse takeover is often a fraction of the cost of an IPO. 3. RTO saves time The registration and listing procedure for an initial public offering (IPO) can take months or even years. A reverse takeover shortens the time it takes to go public from many months ...

What Is Cryptocurrency's Purpose?

Many elements of our lives have altered as a result of the digital era, including how we access information and communication throughout the world. With the introduction of cryptocurrencies, this pervasive digitization has left its stamp on money as well. But, you could wonder, what is the purpose of cryptocurrencies. In many respects, the emergence of cryptocurrencies typifies the digital era: after all, money is an abstraction of value exchange between individuals, and cryptocurrencies have the ability to measure, record, and transmit value transactions on a wider scale than ever before. These coins are run on decentralized communal networks and are available 24 hours a day, 7 days a week, from anywhere. In other words, cryptocurrencies are digital assets that are widely accessible and suitable for use in a digital environment. The Rise of Cryptocurrencies  Look no farther than the evolution of Bitcoin, the world's first cryptocurrency, to understand why cryptocurrency markets ar...

Equity

Equity Shares  They are categorized under long-term sources of finance because legally they are irredeemable in nature. For an investor, these shares are a certificate of ownership in the company by virtue of which investors are entitled to share the net profits and have a residual claim over the assets of the company in the event of liquidation. Various Prices of Equity Shares: - Par or Face Value - Issue Price - Share Premium and Share at Discount - Book Value - Market Value Types of Equity Shares: - Authorized Share Capital - Issued Share Capital - Subscribed Share Capital - Paid-up Capital - Rights Share - Bonus Share - Sweat Equity Share  Equity Share Investment Advantages: - Dividend - Capital Gain - Limited Liability - Exercise Control - Right Shares - Bonus Shares - Liquidity - Stock Split Disadvantages: - Dividend is not fixed/controllable - High Risk - Fluctuation in market price - Limited control - Residual Claim  Equity Financing refers to raising capital by g...